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Theratechnologies (TSX:TH) Degree of Operating Leverage : -13.91 (As of Feb. 2025)


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What is Theratechnologies Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Theratechnologies's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was -13.91. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Theratechnologies's Degree of Operating Leverage or its related term are showing as below:

TSX:TH's Degree of Operating Leverage is ranked better than
93.3% of 880 companies
in the Biotechnology industry
Industry Median: -0.02 vs TSX:TH: -13.91

Theratechnologies Degree of Operating Leverage Historical Data

The historical data trend for Theratechnologies's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Theratechnologies Degree of Operating Leverage Chart

Theratechnologies Annual Data
Trend Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.20 -29.13 3.11 -10.65 -20.94

Theratechnologies Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 66.98 -21.04 -21.53 -20.94 -13.91

Competitive Comparison of Theratechnologies's Degree of Operating Leverage

For the Biotechnology subindustry, Theratechnologies's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Theratechnologies's Degree of Operating Leverage Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Theratechnologies's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Theratechnologies's Degree of Operating Leverage falls into.


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Theratechnologies Degree of Operating Leverage Calculation

Theratechnologies's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 10.053 (Feb. 2025) / -7.978 (Feb. 2024) - 1 )/( 123.121 (Feb. 2025) / 105.908 (Feb. 2024) - 1 )
=-2.2601/0.1625
=-13.91***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Theratechnologies  (TSX:TH) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Theratechnologies Degree of Operating Leverage Related Terms

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Theratechnologies Business Description

Traded in Other Exchanges
Address
2015, rue Peel, 11th Floor, Montreal, QC, CAN, H3A 1T8
Theratechnologies Inc is a specialty pharmaceutical company that addresses the unmet medical needs of HIV patients. It mainly operates in Canada and the United States. The company has two approved products, EGRIFTA marketed in Canada and the United States, and Trogarzo approved for commercialization in the United States. It generates revenue from one customer RxCrossroads, which is domiciled in the United States.
Executives
Dale Weil Director
Joseph Arena Director
Philippe Dubuc Senior Officer
Gérald A. Lacoste Director
Paul Lévesque Senior Officer
Andrew Molson Director
Dawn Svoronos Director
John Leasure Senior Officer
Jocelyn Lafond Senior Officer
Alain Trudeau Director
Sheila Frame Director
Gary Peter Littlejohn Director
Marie-noël Colussi Senior Officer
Jovan Antunovic Senior Officer
Christian Marsolais Senior Officer